Xilam: H1 2017 Revenue: +67%

The Xilam Group (Paris:XIL) posted consolidated H1 2017 revenue of EUR
9.239 million, an increase of 67%. The revenue breakdown is
as follows:

In EUR 000

30.06.2017(1)

30.06.2016

Change

New productions(2)

4,571

4,036

+13.3%

Catalogue

4,652

1,491

+212.0%

Other

16

21

-23.8%

Revenue

9,239

5,548

+66.5%

(1) unaudited data(2)
including subsidies and development

Solid growth

An excellent 1H performance was driven by the two main segments,
Catalogue and New Productions.

Catalogue revenue tripled over the period, taking Xilam to the
next level of its development. This increase stemmed from significant
sales to both TV channels and digital platforms. In particular, sales to
digital platforms jumped 149% to account for 40% of Catalogue revenue.
Growth on the YouTube platforms is continuing its upward trajectory,
with 1.12 billion views.

New Productions also performed well. This segment posted revenue
of EUR 4.6 million, an increase of more than 13%, boosted by delivery of
the latest episodes of Rolling with the Ronks! and further
deliveries from season 5 of Oggy & the Cockroaches.

Strong international growth continues

International sales accounted for more than 67% of H1 revenue, an
increase of over 194% during the period, thereby consolidating Xilam’s
position as a global leader in the animation market.

Xilam content is now shown in more than 160 countries and in 600 million
households.

Xilam has secured a number of major contracts for TV and on the
leading digital platforms

On top of a solid revenue performance, the first half also saw the
signing of several contracts that will further strengthen Xilam’s growth
potential in the coming years:

The signing of a global distribution agreement with Amazon for its two
flagship series Oggy & the Cockroaches and Zig
& Sharko

The signing of an agreement with Netflix on three series that are
currently in production

The signing of a new agreement with the Disney Channel for the
broadcast of Oggy & the Cockroaches in Germany

Also in the first half of the year, Xilam signed a master toy licensing
agreement with Lansay, which should gradually increase merchandising
revenue.

Record full-year 2017 revenue expected

After a successful first half to the year, the pace of programme
delivery will increase in the second half, to account for two-thirds of
2017 deliveries. Xilam is confident that it will post record revenue in
2017.

Season 5 of Oggy & the Cockroaches already a success

Global advance sales for the new season of Oggy & the Cockroaches
were exceptional, and the first programmes will be launched in the third
quarter of 2017, notably on Gulli in France, Discovery in Italy, Disney
in Germany and Cartoon Network for the whole of Asia.

The quality of this series, along with the projected global distribution
and multi-platform programming, will give the Oggy brand
unprecedented exposure.

A step-up in production capacity

The upgraded studios that came on stream in 2016 (in Vietnam, Lyon and
Angoulême) are now fully operational, enabling Xilam to confirm its
ability to deliver about 350 half hours of programmes in 2017-2020.

New series in development

Production of the Mr Magoo series began in early 2017, and Xilam is
currently developing a number of new series, including:

Coach me if you can

Zig & Sharko 3

Rolling with the Ronks! 2

Petit Méchant Loup [Little Bad Wolf]

The fabulous adventures of prince Moka

Coach me if you can and Zig & Sharko 3
are scheduled to enter production in the second half of 2017.

A stronger, more hands-on management team

To support its expansion, Xilam has strengthened its management
structure with the arrival of François Bardoux (CFO), Morgann Favennec
(Executive VP Development & Global Sales) and Nicolas Halftermeyer (SVP
Marketing and Digital), and the internal promotion of François-Xavier de
Maistre (Executive VP Organisation and Human Resources).

About Xilam

Xilam is one of Europe’s leading animation companies, producing and
distributing original children’s and family entertainment content in
both 2D and 3D formats across TV, film and digital media platforms.

Founded in 1995 by Marc du Pontavice, Xilam owns a catalogue of more
than 2,000 animated episodes and 3 feature films including strong brands
such as Oggy & the Cockroaches, Zig & Sharko, The Daltons, Rolling with
the Ronks! and its first pre-school series, Paprika.

Broadcast in over 160 countries on all the major TV networks, these
series are also breaking audience records on all the major digital
platforms, including YouTube with over 2.2 billion views in 2016,
ranking Xilam as one of the top global content providers in animation.

Xilam employs more than 400 people, including 300 artists, who are based
across its four studios located in Paris, Lyon, Angoulême and
Ho-Chi-Minh City in Vietnam.